Part 4/6: Developing Your Operating System: Key Performance Indicators (KPIs)
Key performance indicators (KPIs) are how you measure success in every operation, process, team, or person in your business.
Every process and person should have 1 or 2 KPIs that clearly measure how well they’re contributing to the profitability of your company.
In part 4 of the Developing Your Operating System vlog series, ActionCOACH Rick Phelps elaborates on three KPIs (Throughput Dollars Produced (T), Inventory Levels (I), and Operating Expenses (OE)) in an example operating system and how they contribute to the goals of the business.
He also provides direction on how you can develop KPIs at every step in your business’s operating system to ensure you’re running a profitable enterprise.
Watch the vlog to learn more!